REDUCE ON BORROWING, ADVISES WORLD BANK

BY MAILESI BANDA

A World Bank senior economist has advised government to reduce on borrowing if the Zambian economy is to grow.

Dr Greg Smith explained that the 29 percent of the budget going towards repayment of debts was a hindrance to the growth and development of the Zambian economy.

He said Zambia was no longer a donor dependent country but rather a middle income country.

Reacting to the 2018 national budget presentation to Parliament last Friday by Finance Minister Felix Mutati, Dr Smith said government should look at borrowing as an opportunity to improve infrastructure rather than for consumption.

He advised government to work on the procurement processes in public institutions, saying a close look at the department would help the country save national resources.

“There is need to make procurement in government institutions better and ensure that there is transparency in this part of the public service if the country is to get value for their money, “Dr. Smith stated.

He advised that in the 2019 budget the number of beneficiaries for the social cash transfer should increase from the 500,000 in the proposed budget to 3 million to attain economic stability and have inclusive economic growth.

He said in with the national budget’s objective of no leaving anyone behind, it was im- portant that more people benefited from the social cash transfer and participated in the development agenda.

Dr Smith said Zambia should take a leaf from advanced economies in the Western world where after increasing the number of beneficiaries of the social case, was able to attain economic stability.

Dr Smith observed that Zambia was on the right path to economic development with the release of the debt repayment strategy plan last week.

“I know for a fact that it is politicians that make economic decisions in most countries but it is important that they consult experts before they place the country in economic challenges by borrowing, “he said.